CCSD Needs a House Cleaning and I'm Ready for The Task

Clark County School District is the 5th largest school district in the country.  Since that distinction has arrived, and recently before, the educational environment has steadily deteriorated.  In January 2010 Education Week Magazine rated Nevada 50th in the Nation.  This is the second year in a row for that notorious distinction.  This is the result of bad management at the top.  Current Trustees are trying to shirk the blame by any propaganda that they can come up with.  The unfortunate conclusion is inescapable.  Bad management followed by lies to avoid the blame is more than the taxpayers and parents should or can put up with. More...

School Board Praises Superintendent Walt Rulffes and Nominates Him For a National Award

As a part of their program to reward substandard performance the School Board Trustees have nominated failed superintendent Walt Rulffes for "superintendent of the Year".  To the dumbfounded amazement of onlookers CCSD Trustees publicly affirmed the success of Rulffes after grading a report card that he himself set up.  Copies of this report card later revealed that according to Rulffes own carefully selected criteria he was given praise and this nomination after achieving a grade of 51%.  The failure of the Trustees to set up a grading system that has anything to do with what parents want their children to learn is part of the blame free "Policy Governance" system that the district pays for annually both in fees for the packaged system and in failed management.

Maybe Walt is being rewarded for something that parents, students, educators and tax payers don't understand?  My comments were mentioned in the LVRJ editorial this week.  Here is the link:  http://www.lvrj.com/opinion/wait-to-replace-rulffes--or-not--91350384.html   Commentator Glenn Cook brings up the School Board's plan to hire an immediate replacement for superintendent Rulffes.  Last month there was a scandal wherein the public discovered that the school board gave superintendent Walt Rulffes a huge bonus while simultaneously planning to cut teacher and staff pay and cut school days.  The scheme came to light after Trustee Edwards reported in her newsletter that "The additional benefits discussed were awarded in 2006, prior to..." (Edwards being seated on the board).  The Article.  Jim Haug of the LVRJ then posted a recording of Edwards voice reading the decision to give the big bonus into the school board minutes during October 2009.  Last month Trustee Young attempted to get the matter heard publicly.  she told attendees at the school board meeting that she did not understand what she had voted for (I think that she meant that something was not explained) and wanted to bring the item back.  Walt then gave his notice (of leaving) when his contract was up in August 2010.  The bottom line is that the School Board and the CCSD Public Relations Machine is real anxious to get this story behind them.

No "F Minus" Please... Education Week Names Nevada 50th in the Nation for Education

Education Week Magazine named Nevada 50th in the nation for a second year in a row in it's January 2010 issue.  The dubious distinction was first announced in January 2009 based upon analysis done in 2008.  that year was before the big economic downturn hit the Clark County School District which is the biggest educational entity in the state by a large margin.  CCSD educates 72% of Nevada's students. In spite of the districts persistent failure to comply with the requirements of 'No Child Left Behind' and 'Adequate Yearly Progress' the Trustees led by Board President Janison and Vice President Edwards continue to congratulate CCSD education management staff for their performance.  The school board is apparently unaware that the letter equivalent of 50th in the nation is usually an F minus. More...

Families Flee Las Vegas Due To Bad Schools No Matter What The Economy Is Doing

If you are a homeowner in the Las Vegas valley, like I am, then the Trustees are visiting a disaster on your neighborhood.  I have no idea when it will arrive or if it did already.  But, let me tell you what it is...  When the economy was on the way up people who owns homes in close to town would sell their houses and move to the outlying areas where the new schools were being built.  The new neighborhoods weren't as convenient as the old but the old schools were allowed to deteriorate and it became one more reason to move out.  Neighborhood values slid as families moved outward.  Those left behind didn't notice because they had no kids.  Eventually the neighborhood went down in value and no one knew why.  Much of this was caused by triggering events, mostly AZAC.  When the school that served your neighborhood for many years changes and your kids have to change schools that is one example.  AZAC is how the Trustees have abdicated responsibility for deciding this to. Another reason to go is when AZAC decides to take a group of affluent neighborhoods and send them to a nearby school while annexing a giant trailer park or transient apartment complex into yours.  The next summer everybody is talking new houses and you start thinking that it's  time to go too. 

The current choice encouraging departure by CCSD is when you are free to leave or stay in Vegas.  Maybe you get a chance to transfer with your job and you are a renter.  Maybe you are a young couple deciding to live where her family is or his family is?  The fact that we are 50th in the nation weighs in.

To ask questions about voting click here.  Or Telephone: 455-VOTE

What is the Real CCSD Financial Situation?

We all know how a really capable accountant can make the financial statement of your company prove and assertion that you want to make. Right?

So every time that the CFO of  CCSD or the Trustees come out with some new analysis I have to look to others for a second opinion and you should too.

Lately I have had conversations with Patrick Gibbons of www.NPRI.org (a political reporting watch dog site) and Michael Paoli.  Michael is one of the writers of the opposition to the 2008 bond election proposal from CCSD.  I'll bet you didn't know that the Trustees were going ahead with that election until they read what Michael and others wrote on reply.  They were able to see through all of the garbage and see the situation for what it really was.  So I'm going to post a few links to Gibbons articles and an article that Michael Paoli wrote for public consumption.  The reason is so that you can understand more than the propaganda that the financial officers of CCSD tell.  I suggest that you do your own research and decide for yourself.  I can't say that I agree completely with anyone on CCSD financial issues but you need to read and understand what these guys are saying.  Then you will know that what CCSD is telling you in not true.  And that is the point.

Below is under construction:... 

• Article by Michael Paoli - A" Primer on School Funding"
  

  In academia, the search for eternal truth ended long ago.  Today, it’s the search for eternal funding.  That IS the top priority in the education structure from K-12 to graduate school.

   

  Coverage of the subject matter in this article is not comprehensive by any measure.  Each point would take a book on it’s own. Examples cited in this article are intended to be ones the reader can relate to rather than a lot of technical terminology.   Although Clark County and Nevada State are cited, it’s the same all over the country and, in some cases, FAR worse. Much of what you’ll read here seems negative.  But, facts are facts.  You can’t change reality by living in fantasy.

   

  Remember that problems bring the opportunity for improvement.  There’s no lack of opportunity and that’s the main theme and intention of this article.

   

  For readers looking for detailed reports on education budgets and spending, here are some useful links:

   

  Clark County               http://ccsd.net/directory/budget-finance/publications/         

  Nevada Higher Education               http://budget.unlv.edu/Publications.html   

  Federal Dept of Education              http://www.ed.gov/

  Seek and ye shall find                     http://www.google.com/

   

  Abbreviations used throughout this article:

                  CCSD                   The Clark County School District

                 NSHE                   Nevada State Higher Education

                 UNLV                   University of Nevada Las Vegas

   

  Lesson 1 :  Budget & actual cost are not the same

  The approved budget and actual operating cost are different until we get to lesson 5.  See also lessons 6 & 7. The budget is a forecast expenditure based on assumptions that are always grossly optimistic.  Tax revenue will be at record levels. School enrollment is going to grow at record rate. The school district absolutely has to have everything that every school in the world has and then 10 times that.

  Budgets are intended to give the administration basically a blank check to cover anything that could possibly happen and let them do anything they want without ever running out of money.  Which leads us to lesson 2 & 3.

   

  Lesson  2 :  Projection (forecast) doesn’t mean it actually happens

  Let’s look at the past 10 years.  Based on “expert” projections, the S&P 500 index should be at 21,000.  The average home price in Las Vegas $1,200,000.  The Federal government should be running an $800 billion/yr surplus. So, what’s the problem people?

  CCSD “projections” used in the 2008 budget process were for a record population (and student) growth, record employment gains and record increases in tax revenue continuing for the next 10 years and beyond.  Let's look at the period 2008-10 of which there is no doubt at this point.  The actual is 0 (or less) on all fronts.  So, their budget was based on a forecast that was ridiculous.  Lack of funding for non-existent growth is then called  “budget cuts”.  No cuts.  Just reality setting in.

  Any projection or forecast that exceeds historical norms should be viewed with suspicion.  Yes, bubbles happen. But, they always burst.  Unfortunately, the political structure in this country is based on telling people what they want to hear. Then, coming up with some lame excuse as to why it didn’t happen followed by a declaration that a fantastic turnaround is only a month or two away if they get re-elected.

   

  Lesson  3 :  Budget Padding

   There are 1200+  unfilled positions  in the CCSD.  1000+ critical programs not funded.  Yet, schools operate business as usual. 

  Examine the CCSD budgets of the past 2 years.  They were based on funding for 46,000 students that don’t exist.  Programs of little or no value budgeted at extravagant levels.  FAR too many to list here.

   The budget process follows this sequence:

   1)     Ask for a 50% increase over last year.  No way that’s going to happen, so ….

  2)     40% increase on the second pass with comment that the schools will be adversely affected by budget cuts. Can’t get that either so ….

  3)     30% increase with outrage over  the massive budget cut.  “We can’t do even the most critical programs with this level of funding.”  Still too much to sell to the taxpayers so …

  4)     20% increase which gets approved.  Followed by  total outrage and a massive publicity campaign . ““With a “30% cut” in budget we can’t do anything at all.  So, don’t blame us when academic achievement is rock bottom.””

  Cuts?  For CCSD over the past 5 years, budget has increased at 8 times enrollment growth.

   

  Lesson 4 :  Lowest priority gets funded first

   If there are 100 programs to be funded, the funding starts with number 100 and works backward.  That’s so a shortfall in funding for top priority items can always be claimed.  What gets left out is always something that carries an emotional charge to facilitate the propaganda campaign that goes along with it.  There’s never enough funding.  Increase the funding 10 fold, there will be 1000 more programs added to the list and the same claimed shortfall on the top priority items.

   That position, of course, views education as the top priority.  A view not shared by many school administrators who view education as last.  So, in their mind they are funding (their) highest priority items which are always pay raises, increased benefits, and adding unnecessary staff.  Money designated to build and renovate schools instead goes to (their) highest priorities like the “Sahara Palace” administration building.

   When taxpayers demand change, harassment follows.  I remember a school in New York that cut toilet paper out of the Johns.  That was their answer to taxpayer demands to reduce wasteful spending.

   

  Lesson  5 :  Government never comes in under budget

   The First Commandment for all government administrators is “thou shalt not come in under budget”.  The budget padding gets reconciled in the last month of the budget cycle by blowing off all the unspent money.  Mostly wasted, but it makes the numbers come out.  If they came in under budget, they wouldn’t be able to cry poor mouth in the next cycle.  Another part of the game.

   Let’s talk about my experience in the US Army during the Vietnam war.  In the last month of the budget year, we had a special “field exercise”.  We went out to the middle of nowhere, dug big holes and dumped equipment into them.  Expensive equipment.  And, a lot of it new, still in original cartons.  Then, replacements got ordered to spend out the budget.  Weapons had to be accounted for, but everything else was fair game.  They say we lost that war because of under funding.

   With the so-called budget crisis, there was no problem passing out salary increases and more benefits to the top administrators only a few weeks ago.  Estimated cost is around $200M/yr.  Approved by the School Board in secret but the secret leaked out.  That got publicity, but no action.  The arrogant administration and Trustees stood fast despite total public opposition.  How about the “business meetings” to discuss the budget shortfall?  Would you like some of that prime steak?

   

  Lesson  6 :  Funding is funding regardless of the source

  You’ve heard repeated publicity that CCSD only gets $4400/student in funding.  Absolute rock bottom.  Well, let’s examine that.  The $4400 per is from the State general fund.  Is that the primary source of school funding?  No!  Schools are funded mainly from local property taxes.  The State funding is a supplement.  Along with a percentage of sales tax, hotel tax, real estate transfer taxes, special assessments, Federal grants, investment income, reserve accounts, user fees, donors, and last but not least borrowing.  Whew!  For the 2008-09 school year, CCSD total financial resources were $22,409/student !  An 18% increase from the previous year.

   

  Lesson  7 :  Spending is spending regardless of use

  CCSD claims 2008-09 spending per student was only $6,907 and severely constrained by budget cuts. The total spending was actually $16,466 per student, an increase of 23% from the previous year.

  Damn those statutory reporting requirements!    On to lesson 8.

   

  Lesson  8 :  Dance to the line item shuffle

  This subject is long and complicated.  Most people are totally clueless because this goes to MBA, PhD level in accounting.  An example to illustrate how this works.

   To save money we’re going to eliminate staff positions, thereby “cutting” administration from the operating budget.  Sounds good.  So, let’s go through the process. 

   1)  They get early retirement bonuses. Separately funded from early retirement or special compensation account.

  2)  They get a monthly payment from the pension plan.  Separately funded from the pension & benefit account.

  3)  Then, get hired back as consultants. Separately funded as contract services.

  4)  The positions are back-filled with trickle up promotions and  job title changes with corresponding pay raises.

  5)  Later, new hires fill the lower level (unfilled) positions opened up by this progression.

   The net result is the total outlay is the same or higher.  But, that fact is hidden by the line item shuffle.

   This isn’t limited to the public sector.  A Dow 30 company cut staff intending to reduce cost by $300 million/yr.  After, the bean counters ran the numbers and cost had increased by $100 million.  How could that be?  The reason was 1-5 above. The CEO fired all of the new consultants, put a freeze on staff hiring and got the savings.

   Take any expense item.  Transfer it to another account.  Split it off into multiple suspense accounts.  Re-name. Then, back charge to other accounts.  Is that chalkboard eraser part of classroom teaching?  Or, is it non-capital equipment? Disposal supplies? Facilities maintenance? Sanitation & waste disposal?  Miscellaneous?    Getting it ?

   It’s the same with staffing and which account positions are assigned to.  Many positions are distributed across several accounts.  30% of Mary’s salary is charged to A, 40% to B, 30% to C.  “C” gets eliminated.  But, Mary still collects 100% salary.  The cost of what’s been “eliminated” is simply re-distributed or moved to another account.

  Another thing to watch for are transfers from the capital account to the operating budget or conversely. Money allocated in the capital budget gets spent elsewhere.  The operating budget gets increased to cover the transfer from the capital account.  Both funding and spending get increased by way of the line item shuffle.

   In the old days, people kept books by hand.  Everything was in someone’s view.  Today, a push of a computer button is like a magician.  Abracadabra!  Money disappears right before your eyes.

  
  

  Lesson  9 :  Watch carefully how the numbers are reported

  Is the glass half full or half empty?

  I was in Argentina and had lunch in a restaurant.  The bill came to $8 million Pesos.  How much is that in real money?  40 cents !

  UNLV issued a press release that student activity fees would have to be increased by 60% unless the taxpayers came up with more funding.  What student could possibly afford an increase like that?  How much is that in actual dollars?  $2 !   What hits you as staggering in the way it’s reported is actually trivial.

  “Nevada has the highest college tuition rate per capita.”  We need tax increases to provide more subsidy. Oh?  When, did “Mr. Per Capita” start school?  Isn’t “per student” the relevant basis? Per student, Nevada has one of the lowest tuition rates in the country.  On a credit hour basis, one-third of California for example.  One-fifth of Pennsylvania.

  CCSD claims classrooms are bursting at the seams with an average class size of 35 going to 40.  By strict definition, if you take the official enrollment and divide it by the number of full time licensed teachers on the payroll, the average class size is only 21.  If the non-licensed are included, the ratio drops to 18. One of the lowest ratios in the country.  Yes, there are some classes with 40 students.  But, CCSD uses the term “some” to imply “all”.  They don’t mention how many classes have only 2 students.  Or, how many teachers on the payroll don’t do any teaching at all. 

   “Some” schools are operating at 104% of capacity implying “all” are. Yet, within sight of those are schools operating at less than 50% of capacity.  Overall, CCSD has around 45,000 empty seats right now.  The issue is zoning, not capacity.  So why run up another $5-10 billion in debt to build more schools? 

  Number reporting is always tailored to some pitch for more money by those who stand to profit from the misinformation.  The challenge to the public is sorting through the tricky wording and number manipulation they use.  Not an easy task going against all professional spin doctors on the payroll and the controlled media dispensing the propaganda.

   

  Lesson  10 :   "National Averages"

  CCSD says estimated spending per student for 2010 is $7,119, well below the $10,500 national average.  Lessons 6 & 7 talked about the difference between selective reporting and actual funding.  That aside, what does this comparison do to enlighten us?

  First, on what basis do you compare individual school district funding against the national average? Remember, it's a big country.  And, there are a number of ways to compute averages. Can you compare an urban District with 300,000 students with rural schools where there are 30 students total in all 12 grades? Don’t local costs drive education costs as well?  Can you compare Pine Bluff, Arkansas with Beverly Hills, California on the same basis? Or, against the national average?  That aside ……

  Extensive studies on the subject of education spending per student showed :

   1)    Nationally, the top 10 school districts in spending anchor the bottom in terms of academic achievement and later life achievement (see lesson 13).   Should those be the education role model ??

   2)     Other than those 10, there was no relationship whatsoever between spending and achievement.  In other words, the comparison is totally meaningless !!

  It's not spending per se.  It's what you spend it on.  And, what you get for it.   Return on investment !  First principle of the math tables is 1x0=0, 10x0=0, 100x0=0.  The highest spending school districts prove that point.

  In the private sector, providing the HIGHEST QUALITY product or service at the LOWEST COST wins !

  
  

  Lesson  11 :  Ratios & outside comparisons provide clues

  Compare category expenses in the education budget against the private sector.  For example, how does CCSD administration expense as a percentage of budget compare to the average S&P 500 company?  Twice as much.  How do employee benefits as a percentage of payroll compare?  1.5 times more and increasing.  How does the cost per student riding the yellow bus compare to a passenger riding the CAT bus?  ~50% higher.  Red flags !   Areas ripe for cost reduction.

   

  Lesson  12 :  Independent auditors

  CCSD says they spent $5 billion.  We independent auditors confirm.  But, what did they spend it on, taxpayers ask?   Don’t know, can’t say. That’s outside our contract.

  CCSD says schools are under funded.  From the information the administration supplied  (1000+ new programs costing a gazillion more dollars), We agree they’re under funded.  Is the expense justified, taxpayers ask?  Don’t know, can’t say. That’s outside our contract.

   Did I mention the Millkin junk bond disaster, dot-com bust, Enron, real estate financial meltdown, $12 trillion in bad debt, etc.?  All supported by “independent auditors”.  

  The report by independent auditors is whatever the administration pays for.  So, they’re not really independent.

  Same with consultants.

   

  Lesson  13 :  Learn from others

  The Los Angeles Unified School District (LAUSD) is the undisputed poster child of badly run school districts.

  During the 2007-2008 school year, LAUSD served 694,288 students, 2nd largest in the USA, and had 45,473 teachers. The average class size of 15 is the lowest in the country reflecting systemic overstaffing.  The total school district budget for 2008 was $19,986,000,000 or $28,786/student.  Over the past 10 years, spending has more than tripled despite declining enrollment in every year of the past 5 as everyone who can get out is getting out.

  The LAUSD has a reputation for high drop-out and expulsion rates, extremely low academic performance, and incompetent administration. In 2007, LAUSD's dropout rate was 33.6% for grades 9 through 12. To many, the District has become synonymous with its eight-year, slow-torture effort to build the nation's most expensive high school on an abandoned and toxic oil field.

  The LAUSD school construction program is one of the most costly in the country in terms of expenditures, despite declining enrollment.  The District was able to successfully pry $10 billion in bond money from local taxpayers. A large percentage of this bond money, which was approved by voters for capital improvements, was instead, according to the district's own auditors, transferred to the operating account and used for salary increases and “consultants” (see Lesson 8).   In simple terms, the money was misappropriated into the pockets of insiders and their cronies saddling the District with debt service that can no longer be covered by tax revenue or State bailouts. The District is now seeking Federal aid.

   

  Epilog :  Redemption by recession

  The current economic situation has brought hardship on many people.  Not the way any of us would have wanted it but this recession has literally saved our schools.  It’s raised public awareness of the runaway spending and borrowing and how little we’re getting for it.  People are slowly waking up to what they should have already been aware of.  Budget padding has been reduced.  Millions of dollars in wasteful spending and programs having no benefit to education have been deferred.  A $5 billion bond initiative planned for 2010 has been deferred.  Deferred, hidden from view, but not gone.  Blink your eye and they’ll all be back. 

   

  Those who actually care about education must maintain eternal vigilance in the face of special interest and corruption compounded by public ignorance and indifference.

  I sincerely hope this article stimulates you to learn more and join in the effort to improve our schools.

   

  This article was written by Michael Paoli, Henderson, NV.  It may be distributed freely and used without restriction. 

 
• Patrick Gibbons of NPRI also reported similar findings.  The Trustees are simply lying about how much funding they have...
• NPRI Article Link 
• NPRI Study Link
  For instance, the Clark County district reported it would spend $7,175 per student during the 2008-09 school year. However, when NPRI examined the Clark County School Board’s total original budget figure and divided that sum by the district’s weighted-enrollment figure, it became apparent that the district’s budgeted expenditures per student actually came to $13,387— almost twice what was advertised.4 The Clark County School District report on per-pupil spending effectively ignores nearly half of all spending undertaken by the district.hen.
• So?
  Is good excuse making a substitute for good education?